Riksbank To Extend Its Bond Buying Programme for Six Months

According to Thursday’s statement from the Swedish central bank, they will limit the size of its bond-buying program and affirmed that raising main interest rates should not be enforced immediately in order to push back the probable timing of an initial expansion in mid-2018.

The Riksbanken further stated that the buying of bonds will continue in the second half of 2017 and the size of every purchase will be trimmed.

The extension of bond-purchase plan features the caution relative to ECB’s response towards a better economic prediction. As the European Central Bank is projected to maintain its stimulus package steady after releasing results regarding the current policy consideration on Thursday.

Regardless of the improved outlook anticipated for the economy of Sweden, the Riksbank extended its program by six months until 2017 ends. While the purchase volume for kronor are cut to 15 billion from the previous 30 billion recorded in the first half of the year, keeping its key interest rate unaltered as low as minus .05%.